ew Delhi, November 5: Indian stock markets witnessed a sharp rally on Thursday ahead of Diwali, adding more than Rs 7.3 lakh crore to investors’ wealth. The BSE Sensex surged 1,838.64 points, or 2.38%, to close at 79,140.04, while the NSE Nifty 50 advanced 525 points, or 2.19%, to settle at 24,436.05.
The rally extended the market’s winning streak to six consecutive sessions. Falling crude oil prices, renewed buying by foreign institutional investors and improving global sentiment following the US midterm election results supported the gains.
Crude oil prices fall below $95
One of the major factors behind Thursday’s rally was the decline in international crude oil prices. Brent crude slipped below $95 per barrel to $94.12, while US West Texas Intermediate (WTI) crude fell to $87.51 per barrel. The decline offered relief to India, which depends heavily on crude oil imports.
US midterm election results boost sentiment
The November 2026 US midterm election results also contributed to improved global market sentiment. The Democratic Party won control of both the Senate and the House of Representatives, marking a significant political setback for President Donald Trump’s administration.
The outcome raised expectations of increased political pressure on Trump and a possible end to the US-Israeli war with Iran. Hopes of de-escalation helped push crude prices lower and improved investor confidence.
Foreign investors return to Indian equities
Renewed buying by foreign institutional investors (FIIs) provided another boost to domestic markets. Provisional data showed that foreign investors purchased Indian shares worth Rs 7,284 crore on Wednesday.
Foreign investors infused around Rs 17,235 crore into Indian equities during the first three trading sessions of November, indicating a return of overseas institutional buying.
Rupee strengthens, banking stocks lead gains
The Indian rupee also strengthened against the US dollar, opening at a two-week high of 94.35 per dollar on Thursday. It later rose to 94.32 against the dollar.
The rally was broad-based, with 14 of the 16 major sectors ending in positive territory. The Nifty Midcap 100 gained 1.46%, while the Nifty Smallcap 100 advanced 1.49%. Among sectoral indices, Nifty Private Bank led the gains with a rise of 2.55%.
Among Sensex constituents, Bajaj Finance jumped 5.33%, Maruti Suzuki gained 4.94% and InterGlobe Aviation rose 4.88%.
Market experts said the sustainability of the gains in the coming sessions would be crucial in determining whether the rally could develop into a broader market recovery.
